What is a Pass-Through Contribution?

A pass-through contribution is a contribution made to one non-profit entity, which then transfers the funds to a second non-profit organization. The first non-profit may be acting as the sales arm of the second entity, taking in and passing along contributions to the final beneficiary. In this situation, the pass-through entity does not use the contributed funds for its own operational requirements.

Tax-Deductibility of Pass-Through Contributions

Donations made to a pass-through entity are still considered to be eligible for a tax deduction by the donor, as long as the ultimate receiving organization is a qualified entity (which generally means that it is a 501(c)(3) entity).